BILL ANALYSIS                                                                                                                    

                                                                  AB 552
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          AB 552 (Furutani)
          As Amended  June 1, 2009
          Majority vote 

           HIGHER EDUCATION    7-0         APPROPRIATIONS      12-5        
          |Ayes:|Portantino, Block, Fong,  |Ayes:|De Leon, Ammiano, Charles  |
          |     |Galgiani, Huber, Ma,      |     |Calderon, Davis, Fuentes,  |
          |     |Ruskin                    |     |Hall, John A. Perez,       |
          |     |                          |     |Price, Skinner, Solorio,   |
          |     |                          |     |Torlakson, Krekorian       |
          |     |                          |     |                           |
          |     |                          |Nays:|Nielsen, Duvall, Harkey,   |
          |     |                          |     |Miller,                    |
          |     |                          |     |Audra Strickland           |

           SUMMARY  :  Establishes the Commission on Adequate Funding for  
          Career Technical and Vocational Education at the California  
          Community Colleges (Commission), funded through private funds,  
          comprised of specified members with specified powers and duties.  
            Specifically,   this bill  :  

          1)Provides that the Commission shall be composed of nine voting  
            members with three members appointed by the Governor, three  
            members appointed by the Senate Committee on Rules, and three  
            members appointed by the Speaker of the Assembly; and each  
            appointing entity shall include a California Community  
            Colleges (CCC) professor, a CCC administrator, and a  
            representative of a local workforce investment board.

          2)Provides that the Commission shall also include ex officio,  
            nonvoting members representing the Legislative Analyst's  
            Office, the Department of Finance, the California Workforce  
            Investment Board, the Office of the Chancellor of the CCC  
            (CCCCO), including the Chair of the Senate Committee on Rules  
            or a member of that committee appointed by that committee, and  
            the Chair of the Assembly Committee on Higher Education or a  
            member of that committee appointed by the Speaker of the  


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          3)Provides that the Commission shall elect a chair and vice  
            chair among the members; the term of the chair, vice chair and  
            all members shall be for the duration of the Commission; five  
            members of the Commission shall constitute a quorum at any  
            meeting for transacting business, but a lesser number may  
            conduct hearings; members of the Commission shall serve  
            without compensation but may be reimbursed for travel,  
            subsistence, and other necessary expenses to the extent that  
            funds are available.

          4)Provides that state funds shall not be available to the  
            Commission, except that private donations collected may be  
            expended to reimburse members for expenses and other purposes  
            of the Commission and provides that the Commission may not  
            commence duties until the CCC Board of Governors (BOG) has  
            certified that adequate private funds have been obtained for  
            the Commission to complete its duties.

          5)Requires the Commission to gather facts and conduct a study  
            regarding financing alternatives for career technical  
            education (CTE), vocational education, and high-cost  
            laboratory programs at the CCC, for the purpose of making  
            recommendations to the Governor and the Legislature in a  
            written report to be submitted within 18 months after the CCC  
            BOG has certified adequate private funds are available to  
            complete the Commission's duties.

          6)Provides that the Commission shall hold public meetings and  
            hearings, may authorize a subcommittee to hold hearings, and  
            may request the attendance and testimony of a witness and the  
            production of records, correspondence, and documents that the  
            Commission, any subcommittee of the Commission, or any member  
            of the Commission deems necessary.

          7)Provides that, subject to the approval of the Department of  
            Finance, the CCC BOG may solicit, and the Director of Finance  
            may accept on behalf of the Commission, gifts, donations, and  
            other financial support from private entities for the purposes  
            of carrying out the duties of the Commission, and that private  
            entities may deposit gifts, donations, and other financial  
            support with the state for the purposes of this chapter.   
            Provides that the Director of Finance, upon the CCC BOG  
            certifying that adequate private funds are available for the  
            Commission to complete its duties, shall transfer funds  


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            received to the Commission for expenditure for purposes of  
            this bill.

           FISCAL EFFECT  :   According to the Assembly Appropriations  
          Committee, one-time costs of about $150,000 for 1.5 positions to  
          staff the Commission and complete the required report and for  
          Commission expenses related to travel and per diem.  This bill  
          specifies that the Commission is to be funded from non-state  

           COMMENTS  :  Background:  The state funds community colleges  
          through a funding formula based primarily on an allocation per  
          full-time equivalent student (FTES).  This formula, which was  
          simplified by SB 362 (Scott), Chapter 631 of 2006, generally  
          does not differ between general education and CTE courses.  The  
          author believes that, while the simplification provides a stable  
          environment for the community colleges to plan and administer  
          programs, it may disadvantage CTE programs, which generally have  
          a higher per-FTES cost due to enrollment limitations and greater  
          facilities, materials, and equipment costs.  As a result, the  
          author is concerned that, if community colleges were to make  
          decisions about programs offering based solely on net revenues,  
          they would clearly choose to offer general education courses  
          rather than CTE programs.  

          Purpose of this bill:  The author believes a commission of  
          policy experts and practitioners can provide the Legislature  
          with an independent report of options and policy considerations  
          to address the funding of high-cost community college programs.   

           Other states funding mechanisms for CTE:  According to  
          information complied by the Education Commission of the States,  
          funding formulas vary from state to state.  Some states have  
          separate funding for CTE programs, while others have made no  
          separate provisions.  Seven states report enhanced FTES funding  
          for CTE students, including Arizona, which provides up to 1.75  
          FTES (an additional 75% above a general education student),  
          Kansas, which provides 1.5 FTES, and Florida, which provides 1.3  
          FTES for each student who completes the CTE program.  

          Analysis Prepared by  :    Laura Metune / HIGHER ED. / (916)  


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